This is a very good question, and an important one to ask if you are considering investing your money. The stock market is not the only place one can invest, but it is perhaps the most tangible opportunity for the new investor.

Historically, the stock market has been the playground for the rich. While that has not changed, it is no longer an exclusive arrangement. In fact, the introduction of online investment firms has been very important in reducing barriers to entry when it comes to the stock market. Anybody with an internet connection and an extra $500 can begin to play the market. How effectively they play is up to them.

It's been stated, over and over, that you have to spend money to make money. This is true! But a lesser preached adage is that you need to spend money to lose money. Just as true. So what's the difference?

When it comes to the stock market, the difference is simple - good investing versus bad investing. There are a thousand different ways to invest and more than a thousand different people telling you how to invest. I suggest you ignore all these influences and focus your attention on a simple concept known as "due diligence."

What is Due Diligence?

The answer is simple. Get educated! In the stock market, the less you know, the less you make (more you lose?). So every dollar you invest should be a dollar you research. Your money is your money. So treat it right!